MINNEAPOLIS, Minnesota – Investment bank and asset management firm Piper Jaffray Companies has reached a definitive agreement to acquire Simmons & Co. International for a total consideration of approximately $139 million.
Piper Jaffray intends to operate the business under the Simmons brand as a Piper Jaffray company and it will continue to run its energy practice from Simmons’ Houston and Aberdeen locations. The business will be integrated into Piper Jaffray’s equities and investment banking group, with senior leaders at the firm assuming senior leadership roles.
The $139 million consists of $91 million in cash and $48 million in restricted stock. Piper Jaffray has also committed an additional $21 million in cash and stock for retention purposes. Key Simmons professionals have entered into employment agreements with Piper Jaffray that become effective concurrent with the transaction’s close.
Founded in 1974, Simmons is one of the largest independent investment banks specializing in the energy industry, offering M&A advisory, capital markets execution and investment research.
“This is a milestone transaction as we meaningfully increase the firm’s investment banking footprint. Expanding into the energy sector has been a long-term goal for us and we are pleased to have found the ideal partner to fulfill this strategy,” said Scott LaRue, global co-head of Piper Jaffray investment banking.
Fred Charlton will be appointed chairman of energy investment banking and will serve as co-head of energy investment banking together with James Baker. Bill Herbert will become head of global energy research, and Will Britt will continue to lead specialized energy equity sales.
Ira Green will become head of energy capital markets and Colin Welsh will become head of international energy investment banking and executive chairman of Piper Jaffray’s UK subsidiary, and continue to lead Simmons’ international activities. Michael Frazier, Simmons’ chairman, president and CEO, has entered into a consulting agreement with Piper Jaffray and will continue to serve in a senior role that leverages his relationship and experience.
The transaction is subject to regulatory approval and customary closing conditions and is expected to close in 1Q 2016.
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